FreshiiFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Freshii franchise requires a total initial investment of $173K – $641K, including a $30K franchise fee and an ongoing 6.0% royalty[2]. The 2023 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 32.4% charge-off rate across 43 loans[1]. Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2023 FDD issuance
Overview
- Investment
- $173K – $641K
- 8th pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 6.0%
- 26th pct Service Resta…
- Units
- 52
- 36th pct Service Resta…
- SBA default
- 32.4%
- system-wide median varies by category
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
32.4% of SBA loans charged off across 43 loans, above the 16% franchise average.
The system contracted 18% year-over-year. Investigate why units are closing.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $173K – $641K including a $30K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict F (Bottom Quintile) with a risk score of 100/100. SBA loan charge-off rate of 32.4% across 43 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Freshii Development, LLC
- Parent company
- Foodtastic, Inc.
- Incorporated in
- DE
- HQ
- 27 North Wacker Drive, Suite 426, Chicago, Illinois 60606
- Auditor
- KPMG LLP
- Audited financials
- Franchisor revenue
- $2.3M
- vs $1.6M prior year
- ⚠ Going-concern note
- Disclosed in FDD 2023
- Status as of 2023; may have been resolved in a later filing we don't yet have.
Overview
About
Freshii franchisees operate fast-casual juice bars, smoothie shops, and health-focused quick-service restaurants serving fresh-pressed juices, açai bowls, salads, and protein-based meals. Day-to-day operations involve inventory management of fresh produce, customer-facing POS transactions, staff scheduling, and maintaining brand consistency across menu preparation and store presentation. Locations typically serve lunch/breakfast-focused dayparts in high-traffic retail or mall environments.
- CEO
- Peter Mammas
- Headquarters
- IL
- Founded
- 2008
- FDD year
- 2023
- States available
- 20
FDD Item 7 · 2023 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $30K | $30K |
| Working capital (3–6 mo) | $10K | $60K |
| Equipment, build-out, other | $133K | $551K |
| Total initial investment | $173K | $641K |
Source: Freshii 2023 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $173K – $641K
- Better than avg vs category
- Liquid capital req'd
- $10K – $60K
- Better than avg vs category
- Franchise fee
- $30K – $30K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Sales · typical 6–8%
- Ad fund
- 1.5%
- typical 3–5%
- Total fee load
- 7.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 1.5% of gross sales |
| Training fee | $500 |
| Transfer fee | $10K |
| Renewal fee | $30K |
| Total fee load | 7.5% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Full-Service Restaurants averages
How Freshii Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 52
- Opened
- 1
- Last reporting year
- Closed
- 12
- Terminated
- 8
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 23.1%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 25.0%
- Net growth (yr3)
- -17.5%
- Net unit change last year
- 3-yr CAGR
- -40.2%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- Termination rate
- 15.4%
- Franchisor-initiated terminations
- Ceased ops
- 23.1%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 25 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 43
- Loan volume
- $12.9M
- Median loan
- $334K
- 50th percentile
- Charge-off rate
- 32.4%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 67.6%
- 5-yr charge-off
- 14.3%
- Loans approved 2021+
- Active lenders
- 26
- Defaults
- 12
Vintage analysis
Freshii charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Freshii's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 8-year lending trend
Instant access. No subscription.
A 32.4% charge-off rate means roughly 1 in 3 franchisees failed to repay their SBA loan. Investigate what changed.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Freshii presents HIGH RISK due to contracting unit base (-17.5% YoY), going concern status, litigation history, zero financial transparency (no Item 19), and an unclear value proposition in a declining health-food category.
Litigation (Item 3)
Two cases resolved by settlement: (1) ADR Institute of Canada arbitration with 2512549 Ontario Inc. regarding breach of contract and territory disputes, settled February 10, 2022; (2) American Arbitration Association case with Kore Meals, LLC alleging breach of contract and breach of duty of good faith and fair dealing, settled February 6, 2023. No claims initiated against franchisees in fiscal year 2022.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · KPMG LLP⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 100 / 100 rating
- 01MINORSystem contracted 17.5% year-over-year (-9 units from ~52), indicating accelerating franchisee departures and potential market saturation or operational challenges
- 02HIGHGoing Concern warning signal suggests franchisor may face viability issues; combined with unit decline, raises questions about long-term support and system sustainability
- 03HIGHTwo breach of contract litigations (Lettuce Eatery Canada affiliate and Kore Meals/Freshii Development) indicate internal conflicts, partner disputes, and potential franchisor-franchisee relationship friction
- 04MINORNo Item 19 disclosure (average unit volumes, revenues, or profitability) prevents validation of ROI claims; $172.5K-$641K investment range lacks transparency on realistic returns
- 05MED6% royalty on undisclosed gross sales creates cash flow risk; without knowing average unit economics, franchisees cannot assess true profitability or break-even timelines
- 06MEDCompetitive QSR segment (health/juice bars) has high saturation and declining consumer traffic post-2020; Freshii's unit decline may reflect broader market contraction, not just brand weakness
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 3 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Ontario, Canada |
| Jury trial waiver | Yes |
| Governing law | Ontario, Canada |
| Litigation count | 2 |
View Item 3 litigation summary
Two cases resolved by settlement: (1) ADR Institute of Canada arbitration with 2512549 Ontario Inc. regarding breach of contract and territory disputes, settled February 10, 2022; (2) American Arbitration Association case with Kore Meals, LLC alleging breach of contract and breach of duty of good faith and fair dealing, settled February 6, 2023. No claims initiated against franchisees in fiscal year 2022.
Items 10, 11
Training & Operations
- Classroom training
- 39 hrs
- On-the-job training
- 80 hrs
- Ongoing training
- Required
- POS system
- Oracle
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Oracle
Item 20 · call current owners
Franchisee Contacts
61 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Freshii · FDD (2023) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Freshii franchise?
The total investment to open a Freshii franchise ranges from $173K – $641K, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Freshii franchise owners earn?
Freshii does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Freshii's franchise failure rate?
Based on SBA 7(a) loan data, Freshii has a charge-off rate of 32.4% across 43 loans, meaning 32.4% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Freshii franchise locations are there?
As of their most recent FDD filing, Freshii has 52 total units in the United States, including 52 franchised units and 0 company-owned units. 1 new units were opened in the latest reporting year.
Is Freshii a good franchise to buy?
FranchiseVerdict rates Freshii as a F-grade franchise with a risk score of 100 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.